Impending Reports to Point to Slowing Economy

A Bloomberg News poll predicts more jobs were created in August than in July, suggesting that the subprime mortgage crisis isn't dragging down the economy. But analysts maintain that the rising cost of credit is likely to prolong the worst housing recession in 16 years.

RENEE MONTAGNE, host:

Our business news begins with a big week for judging economic growth.

Economists are expecting fairly benign reports this week on unemployment and inflation. A Bloomberg News poll predicts we'll find out more jobs were created last month than in July, a couple of signs that the subprime mortgage crisis isn't dragging down wider economic growth.

Still, several top analysts say the rising cost of credit is likely to prolong the worst housing recession in 16 years. Recent surveys show it's already hurt business and consumer confidence. Americans are buying fewer big items and economic pessimism can be self-fulfilling, making a full-blown recession even more likely.

Copyright © 2007 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.

NPR transcripts are created on a rush deadline by a contractor for NPR, and accuracy and availability may vary. This text may not be in its final form and may be updated or revised in the future. Please be aware that the authoritative record of NPR’s programming is the audio.

Comments

 

Please keep your community civil. All comments must follow the NPR.org Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.